Global Industrial Greases Market is Estimated to Witness Moderate Growth Owing to Rising Manufacturing Activities and Increasing Demand for Bio-Based Greases
The global industrial greases market is estimated to be valued at USD 4.73 Bn in 2024, exhibiting a CAGR of 3.2% over the forecast period (2024-2031). The moderate growth of the market can be attributed to rising manufacturing activities across the automotive, construction, and metal working sectors. Furthermore, the increasing demand for bio-based and environment-friendly greases from end-use industries is expected to drive the market growth during the forecast period.
Market Dynamics:
The market is projected to witness drivers such as rising manufacturing activities and increasing demand for bio-based greases. The global manufacturing sector has shown positive signs of recovery in recent times with resumption of operations post pandemic restrictions. This has fueled the demand for industrial greases from machinery and equipment used in manufacturing plants. Furthermore, stringent environment regulations regarding the use of petroleum-based products is driving companies to develop bio-based and ecologically friendly greases. This is expected to offer new growth opportunities to grease manufacturers focused on green chemistry solutions.
Increasing Demand from Manufacturing Industries is Driving Growth in the Global Industrial Greases Market
With rapid industrialization and expansion of manufacturing capacity, the demand for machinery and equipment has increased significantly. Industrial greases play a vital role in lubricating various machine parts and reducing friction in manufacturing equipment. They help extend the life of machines and improve their performance. As more manufacturing units are being set up globally to cater to the rising industrial output, the consumption of industrial greases is also growing steadily. The expansion of industries, such as automotive, metal processing, construction, mining, and others, is presenting lucrative opportunities for industrial grease manufacturers.
Rising Infrastructure Development Projects is Fueling Demand
Mega infrastructure development projects in areas such as roads, railways, power plants, ports, airports, etc. require a large number of heavy construction equipment and machinery. Industrial greases are extensively used to lubricate parts that undergo heavy friction and pressure in construction equipment like excavators, loaders, cranes, bulldozers, and others. With growth in infrastructure spending worldwide, especially in developing nations, construction activity has picked up significantly. This is having a positive ripple effect on the sales of industrial greases used in equipment engaged in infrastructure projects. Various international organizations have also predicted robust infrastructure investment over the next decade, ensuring steady demand growth for industrial greases.
Volatility in Raw Material Prices Pose a Challenge
Fluctuating prices of key raw materials used in formulating industrial greases can impact the margins and profitability of manufacturers. Base oils and thickeners are the major ingredients, and their prices depend on petroleum valuations and availability. As crude oil rates experience volatility in global markets, it affects the production costs for grease makers. Sudden hikes in raw material costs force companies to increase product prices as well. This can lower the competitiveness of industrial greases against substitute lubricants and dampen demand to some extent. Manufacturers aim to offset rising costs through operational efficiency but significant price swings make business planning difficult.
Environmental Regulations Can Restrain Usage
Growing environmental concerns worldwide have led to stringent norms regarding the use and disposal of industrial lubricants. Regulatory bodies are promoting the adoption of bio-based and environment-friendly greases with less toxic constituents. However, 'green' greases typically have higher costs than conventional petroleum-derived varieties. This acts as a deterrent for some end-use sectors where the priority is affordability over sustainability. Similarly, disposal guidelines for used greases require proper treatment before discarding. The additional compliance burden and expenses associated with it discourage certain smaller industries from opting for grease-based lubrication. While regulatory push helps boost biodegradable grease innovation, near-term demand take-up may be slower.
Developing Business in Emerging Economies Present Opportunities
Many emerging economies in regions like Asia Pacific, Latin America, Africa, etc. are witnessing rapid economic and industrial transformation due to strong GDP growth rates. This opens up massive opportunities for suppliers of industrial input materials to gain new customers and expand market share. Since these developing regions are still in the process of building infrastructure and strengthening manufacturing capacity, the demand for construction and industrial machinery is set to rise exponentially in the coming years. It will fuel the requirement for high-performance lubricants like greases. International grease players can partner with local firms, set up manufacturing units to cater to the emerging markets more efficiently. This presents a major door for revenue and volume growth in an otherwise mature industry.
Demand from Energy Sector Presents New Avenues
The global energy industry is transforming at a fast pace with increasing focus on renewable sources of power generation. Massive capital is being pumped into building wind and solar farms worldwide. In addition, oil & gas exploration and production activities continue expanding to meet rising energy needs. All these segments extensively use industrial greases for lubricating mechanical components of machinery engaged in their operations. From wind turbine gearboxes and generators to drilling equipment, greases play a crucial role in ensuring reliable performance of energy infrastructure assets. Their specialized formulations also help lower operating costs. This offers considerable untapped potential for grease suppliers to create innovative product lines tailored for the expanding energy sector.
Link - https://www.coherentmarketinsights.com/market-insight/industrial-greases-market-3852
Key Developments
- In August 2024, Energizer partnered with Assurance International to introduce new automotive oil products in India, including filters, batteries, and lubricants tailored for automotive use. This collaboration is intended to integrate advanced technology into Assurance International’s offerings, with a growth target of 50%.
- In April 2024, Savsol Lubricants launched Ester 5, a biodegradable lubricant developed for high-end automotive and railway applications, designed to reduce friction and enhance efficiency in electric vehicle (EV) batteries and high-speed railway coaches
- In April 2024, Castrol planned to roll out the 'Castrol MoreCircular' program across the U.S., a nationwide effort to lower the lubricants industry's carbon footprint by collecting and re-refining used oil
Key Players
Shell plc, ExxonMobil Corporation (Mobil), Chevron Corporation, BP plc (Castrol), TotalEnergies SE, Fuchs Petrolub SE, Petro-Canada Lubricants Inc. (HollyFrontier), Klüber Lubrication (Freudenberg Group), Sinopec Limited, Idemitsu Kosan Co., Ltd., Indian Oil Corporation Ltd. (Servo), and Phillips 66 Lubricants
